Reference no: EM131000031
Consider again the avocado example in the textbook, where demand and supply functions are Qd = 160 – 40p Qs = 50 + 15p Suppose a severe drought hit California, and the state government decided to subsidize farmers 40 cents for each pound of avocados produced. (Unit: Q is million pounds of avocados, and p is dollars).
(1) With government subsidy, write down the functions of demand and supply.
(2) What is the new equilibrium price and quantity of avocados?
(3) Plot the demand and supply curves in the same graph. Label your horizontal and vertical axis properly (you can graph in either (Q, p) or (p, Q) space). Indicate the end points of each curve on each axis. Indicate the change of direction for any curve when there is government subsidy (note: the change of direction depends on whether you graph in (Q, p) or (p, Q) space).
(4) What is the price that farmers receive, and the price that consumers pay for each pound of avocados?
(5) How much in total does the state government have to subsidize the farmers?
|
Comparing multiple sample means - anova
: Read the following CASE ANALYSIS - Pizza Delivered Quickly - Choose one of these mini-projects for your assignment each week. If you choose Option 1 you must continue to work on that option each week.
|
|
What is the effect of the change in methods
: Ignoring income taxes, prepare the 2011 journal entry to adjust the accounts to reflect the average cost method.
|
|
Describe two strategies you might employ to prevent dmc
: Describe at least two approaches that might decrease DMC in the criminal justice system and explain how. As a current or future criminal justice professional, describe two strategies you might employ to prevent DMC in the future, and explain why yo..
|
|
Heavily influenced by the price of another product
: Assume that the demand for a product X is heavily influenced by the price of another product Y (Py), and the income of consumers (I). The cross-price elasticity of X with respect to Y is exy = 1.25, and the income elasticity is eI = 2. Are X and Y co..
|
|
What is the new equilibrium price and quantity of avocados
: Consider again the avocado example in the textbook, where demand and supply functions are Qd = 160 – 40p Qs = 50 + 15p Suppose a severe drought hit California, and the state government decided to subsidize farmers 40 cents for each pound of avocados ..
|
|
Explained variable in regression analysis
: The variation attributable to factors other than the relationship between the independent variables and the explained variable in a regression analysis is represented by Question 19 options: regression sum of squares. total sum of squares. error sum ..
|
|
Which of the two parties involved breached the contract
: Which of the two parties involved breached the contract? Was the loan's prepayment charge reasonable, and should it have been enforced? Why or Why not
|
|
Explaining your actions and justifying them
: Write an open letter (to be published in the Wall Street Journal) both explaining your actions and justifying them. Your purpose is to persuade your readers that your decision was correct, inevitable, and unavoidable.
|
|
Is he better off after the introduction of rewards program
: Consider a consumer, Adam, who has a fixed amount of income, I , which he can spend on two goods each month, Christopher Nolan Movies and Chipotle Burritos, denoted by M and B , respectively. Will Adam’s consumption of Chipotle Burritos increase, dec..
|